Business insurance policies will automatically include protection against flooding under a change announced by Zurich Australia.

Unveiled under the banner of a "corporate responsibility" program, Zurich says all its commercial customers will be covered for flood from this year.

CEO David Smith says the industry continues to struggle with insuring against flood.

"With the frequency and ferocity of storms likely to increase because of global warming, it's time for action, not just words," he said.

"The industry needs to change its mindset from its role in paying claims to restoring people's lives."